Sorry, courtesy of my poor explanation you have the wrong end of the stick. Hidden in my post are the words, normal transactions. What I meant by that was that the normal tax free status for the family home should cease. With roll over provisions to defer the tax if another principal dwelling is bought. So ,as long as you buy another house of equal or greater value, no tax paid. It would be this deferral of CGT liability that would cease with death. I stress that I would prefer CPI adjusted values to be used, or taxing real gains only. The problems you identify if the assets tax status changes , are quite correct, but with the system I have suggested, they should not arise. cheers
